Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleLabour Chancellor Rachel Reeves is tightening public spending rules, warning cabinet ministers they can no longer easily access Treasury reserves for public sector pay increases. Chief Secretary to the Treasury, James Murray, has informed ministers that access to reserves will only be granted in exceptional circumstances and any funds received must be repaid. This measure is part of preparations for the upcoming Autumn Budget, aiming to control government finances amidst predictions of a significant £50bn gap in Labour's sums. The new policy comes after Labour previously offered above-inflation pay rises to public sector workers to end strikes, a strategy now facing renewed pressure from groups like junior doctors. Ministers seeking Treasury assistance will need to demonstrate they have exhausted all other options for savings and cuts, with any allocated funds requiring repayment over successive years. In fullNo more bailouts to fund public sector pay rises, cabinet ministers warnedThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Warning issued to cabinet ministers over public spending rules
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleLabour Chancellor Rachel Reeves is tightening public spending rules, warning cabinet ministers they can no longer easily access Treasury reserves for public sector pay increases. Chief Secretary to the Treasury, James Murray, has informed ministers that access to reserves will only be granted in exceptional circumstances and any funds received must be repaid. This measure is part of preparations for the upcoming Autumn Budget, aiming to control government finances amidst predictions of a significant £50bn gap in Labour's sums. The new policy comes after Labour previously offered above-inflation pay rises to public sector workers to end strikes, a strategy now facing renewed pressure from groups like junior doctors. Ministers seeking Treasury assistance will need to demonstrate they have exhausted all other options for savings and cuts, with any allocated funds requiring repayment over successive years. In fullNo more bailouts to fund public sector pay rises, cabinet ministers warnedThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
